Egypt Receivables: A Glass Half Full Or Half Empty?

The fall in sums owed by EGPC to IOCs looks like good news. The end-2016 total is down $1.4bn on two years earlier. But scratch the surface and a different picture emerges with even ‘winners’ Eni and BP accepting an unofficial write-down.

Eni and BP, the two largest producers of gas in Egypt, have both notched up substantial falls in the amounts they are owed by Egyptian state firm EGPC.

Eni, in its 2016 annual report, released 22 March, says that as of end-2016 the “overdue” portion of sums owed to it by “state-owned oil companies in Egypt” was €420mn ($441mn). This represents a fall of $396mn (47%) from the end-2015 figure of €771mn ($837mn), with the total down almost $500mn over two years (see table).

“The residual amount outstanding at the reporting date has been further reduced by a payment dated January 2017 amounting to $240mn (€228mn).” BP, is more coy; its latest annual report, released 6 April, for the first time in several years declines to give an Egyptian receivables figure.(CONTINUED - 3007 WORDS)